Bingo Budget Tax Cut – Is It Much Ado About Nothing?

Posted by Gambling News | Bingo News | Sunday 30 March 2014 11:14 am

It has been years that the UK bingo industry has been trying to get HMRCS to cut bingo tax. This is tax for clubs of the live variety, not necessarily the online kind. Now, apparently all Britain is celebrating because the Government has finally realised that this industry is in serious jeopardy. Bingo tax has been cut from 15 to 10%. Chancellor, George Osborne has finally been convinced to attempt to “protect jobs and protect communities”. During the last thirty years – ¾ of bingo halls have gone out of business, and 2000 jobs have been lost.

But like all taxation concessions, the Chancellor is still compelled to balance the budget, and has predictably given with the right hand, while taking away with the left. The bad news is that fixed odds betting terminals have to bear the burden of the concession for bingo. According to Osborne, these machines have "proliferated" during the last ten years. So, he has raised their tax to 25%. On the good side – and there is another – beer duty has also been cut, and Rank (Mecca Bingo)will be building three new bingo halls.

On the other side of the tax landscape – online gambling concerns that are situated in white listed areas, have not paid tax to the UK since the industry first got its start. It is realistically speaking unfair, that these businesses may offer services to a UK-facing audience, make money from these services, and not pay tax to the UK Treasury. This is all set to change, and taxes on remote gambling are about to kick off from December of this year (2014).

In the meantime Ireland has not been as quick off the mark as the British have, where the regulatory process for online gambling tax has not yet passed the committee stage. The Betting (Amendment) Bill 2012 has passed through the Dailhowever, but who knows how much longer the bill will take to be passed? This act provides a regulatory regime for online gaming operators, but has been gathering dust since 2011. Apparently the Ministry for Finance has been dragging their heels, and all the bill needs is to be signed.

While the gravy train ride is not quite over for operations such as online bingo, casino, poker, and sports betting operators, in the UK and Ireland, the net is certainly closing in. New tax benefits for the bingo crowd, could not as badly materially affect British operators in the online game. So, there is something for these operators to look forward to – being taxed is not all doom and gloom.

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Online Bingo: How Full Is Your House?

Posted by Gambling News | Bingo News | Saturday 27 April 2013 6:38 pm

Today it is virtually impossible to switch on the television, or flip through a UK newspaper without seeing an ad for an online bingo site. These websites have become the trendiest places to play if you fancy good night in. A great deal of advertising money is spent on making sure that all the best sites are visible to the public. But who is playing this game, and why has it become so popular?

A typical sort of night in for a typical sort of online bingo player, might see someone playing every night or at least regularly for two or three hours; sometimes more, sometimes less. Most people who play at these websites, don’t do it for the prizes, they play for the "social" aspect of chatting with friends, and making new online buddies. Some spend more than they win, but others win really good prizes, when they do win, generally we hear them say that they never expected to win.

The amount of new online bingo sites coming on to the World-wide web has also increased exponentially, and there is always supply where there is demand. Just a few short years ago, back in 2004, there were less than twenty such sites for the UK-facing audience. Today it is believed there are approximately 350 such websites.

Operators and owners of bingo websites range from Capital Venture partners, through newspapers such as The Sun, and live bingo club operators. Two of the biggest names in British Bingo are also found online. These are Gala and Mecca Bingo.

Originally this game was synonymous with smoky rooms, crowded tables and the camaraderie of a night out with the girls, but it has changed, and the socialising aspect of bingo has very much moved online. It was also once synonymous with older players, and now while elderly people do play online, the gross demographic is younger. Some start as young as 18.

One 21 year old player reported that she plays two to three times a week, and then five hours on Sunday. Citing that she enjoys the excitement the game provides, as well as the companionship of other players in the chat rooms. Not once was there made a mention of the prizes she could possibly win.

It is the chat-room that is the “key” element for most online bingo players. Talking or making a noise in a land bingo club is strongly discouraged, in case a ball call is missed or miss-heard. Online players can chat whenever they like. Cards are completed automatically, so there is nothing to concentrate on. Bingo Lingo has evolved, players can chat privately, and the cost of a bingo card starts at only 1p, many games are even for free. So what’s not to like? It is self-evident why the game is so popular.

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